If the IRS has issued a threat on you or your business with tax levy or lien or if disputing an audit, you can hire a representative that will protect your rights during the appeal process. Unfortunately, some taxpayers do not realize that they can hire the appropriate firm with the specialized knowledge, experience, and skill-set to represent them during this stressful process.
Appeal Conference
The IRS and or the state have an Appeals Office which takes care of this kind of dispute. It is an office which is different from the agency itself, so it can provide a neutral, fair and unbiased result. What this means is that if the IRS or the state has made a change to your tax form, such as not permitting a specific deduction, then you can appeal through the office to dispute the change. The appeal means that a conference will take place to determine if the actions by the IRS, or, FTB, EDD, CDTFA, BOE were warranted.
The conference itself is rather informal in which an officer assigned to the case will settle the dispute in a similar fashion to a judge in a courtroom. Always have in mind that you can have a representative by your side in such matters, as long as they are authorized to practice before the IRS such as an Enrolled Agent, Certified Public Accountant (CPA) or tax lawyer. If the settlement officer decides in favor of the IRS, you can file suit in tax court and have the matter decided there.
How to Start: To get a hearing with regards to a levy and or lien, or equivalent hearing, a form 12153 CDP collection due process, or CAP, or you will need to write a letter of protest. Your letter must have the following included;
·Copy of IRS Notification
·Relevant Tax Years Concerning Dispute
·Personal Contact Information
·Affirmative Statement Requesting Right of Appeal
·Statements of Facts and Law that Support your Position
During your dispute, appeal conference you must be ready with your particular story, facts, circumstance, tax law, and argument summary as to why the IRS or the state should reconsider their position.
Tax Court
If the appeals officer finds in favor of the IRS, you can challenge that determination in tax court. This can be accomplished in two ways;
·Pay the tax and file for a refund in US District Court or Court of Federal Claims
·Do not pay the tax and go to US Tax Court
While you do not have to hire a lawyer to represent you, it is recommended because they understand the protocol, law and can best protect your rights
Collections of Tax Debts
If you lose the case, then the IRS will start collections for the unpaid tax debt itself. While you can no longer dispute the debt, you can question how the debt is collected. For example, if the federal government puts a lien on your property, you can get a hearing to dispute that method after receiving written notification that the lien is being put into place.
Advance notice by the IRS is also needed if they decide to garnish your wages or freeze and levy your bank accounts. If they do not succeed to make provision for proper notice or violate any other law related to this process, you can appeal that also. While this will not remove or lower the tax debts you owe, it can delay collection action.
With the proper representation, we can negotiate an alternative resolution in lieu of enforcement collection actions, or full payments. We can structure partial pay agreements, direct debit payment plans and OICs – offer in compromise settlements.
IRS and State Audit
The notification of an audit, especially by the IRS, or, FTB, EDD, CDTFA, BOE, can be an uncomfortable event in your life. Keep in mind that while many audits are triggered by a specific circumstance in your tax returns, the IRS and the state also performs randomly-generated audits. This means that your tax returns may be perfectly okay, but the IRS or the state is required to look them over regardless.
Types of Audits- Appeal & Dispute
There are several types of audits from the IRS. Depending on what type of audit is being performed, you may consider our representation firm to even the odds. Also, hire a representation firm if you want to dispute and appeal.
By-Mail: Usually, this type of audit does not need excessive representation, simply a well drafted, documented response stating tax law to support your position.
Random: You may need representation depending on the state of your tax returns.
In-Office: You will need representation as this concerns specific issues.
Field: You will definitely need representation because of a major issue with your tax returns.
A By- Mail audit is when the IRS has a question or two that you can reply to in the mail. If it is straightforward enough, such as missing form or question that isn’t filled out, there is no need to hire a representation firm at that point. The same may be true of a random audit if your tax returns are free of errors or you’re not missing documentation.
However, there are good reasons why representation works for you when your tax returns are subject to an in-office or field audit by a TCO, examiner or revenue agent.
Explaining the Process:
The fear associated with an audit, especially one from the IRS, happens because taxpayers do not understand the process. The fear of the unknown can be quite strong and unsettling. That’s why having someone by your side who is experienced in such matters can make all the difference. A calming presence is required, so that you can get through the audit with minimal difficulty, especially that you do not have to meet the auditor yourself.
Protect Your Rights: First and foremost, an experienced Enrolled Agent, attorney or CPA knows the tax code and will do everything possible to protect your rights when an audit occurs. By choosing to have the proper representation, your rights will be respected during the entire process.
Providing Guidance:
Enrolled Agents, CPAs and tax attorneys are available to explain what is happening, so you can make the best-informed decision about what to do next. This means that the choices you make will work best in your favor thanks to the guidance that is provided.
Correcting Potential Mistakes:
Another reason why representation is beneficial is that any potential mistakes can be spotted quickly and corrections could be made. In fact, you should talk to an Enrolled Agent, CPA or tax attorney before you contact the IRS when receiving notification of an audit.
Going through an audit may not be pleasant, but it can be done with confidence when your hire the best representation firm and best representation firm to guide you through the process. Once you understand the type of Tax audit being performed, then you can make the best-informed decision about what to do next
Guide on IRS Tax Appeal
Collections of Tax Debts